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gManZboy writes "Nokia said it "sold" 1 million Lumia devices in the fourth quarter (in quotations because there is no easy way to tell how many units actually made it to consumers or are simply idling in channel inventories). That means every Windows Phone 7 device Nokia shipped in Q4 cost Microsoft $250, minus the royalty. That's for phones, like the Lumia 710, that can be bought for $50 or less with a standard carrier contract.

Ordinarily, this would be madness. Even a kid with a lemonade stand knows you're supposed to sell stuff for more than it costs to make. But these are not normal times at Redmond. Microsoft's willingness to extend what is basically a billion-dollar bribe to Nokia, still the world's biggest handset maker by volume, to ditch Symbian and use Windows Phone as its default OS shows how desperate the software maker is to get back into the mobile race, where it badly trails Apple and Google."Link to Original Source